South32 has agreed to purchase all outstanding shares in Arizona Mining for C$1.8bn ($1.3bn) in a move that will expand the Australia-based mining group’s presence in North America.
The all-cash offer of C$6.20 per share from South32, which was spun off from BHP in 2015, values the Toronto-listed mining company at a 50 per cent premium to its closing price on Friday of C$4.13, according to a stock exchange filing made by South32 on Monday morning.
The offer to acquire the remaining 83 per cent of issued and outstanding shares in Arizona Mining implies total equity value of C$2.1bn, or $1.6bn based on an exchange rate of $0.7574 for the Canadian dollar, according to the statement.
Arizona Mining owns the Hermosa deposit of zinc, lead and silver located in Arizona. Graham Kerr, chief executive of South32, said the offer “will allow us to optimise the design and development of one of the most exciting base metal projects in the industry”.
South32 also said the directors of Arizona Mining had unanimously recommended shareholders vote in favour of the transaction. The deal is expected to close in the September 2018 quarter subject to approval from more than two-thirds of shareholders.
Source: Mining.com
